Discounted Cash Flow (DCF) Analysis Levered

Western Digital Corporation (WDC)

$39.7

-0.40 (-1.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 33.11 | 39.7 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 20,64716,56916,73616,92218,79318,484.0818,180.2417,881.4017,587.4717,298.37
Revenue (%)
Operating Cash Flow 4,2051,5478241,8981,8802,064.532,030.601,997.221,964.391,932.10
Operating Cash Flow (%)
Capital Expenditure -835-876-647-1,146-1,107-955.99-940.28-924.82-909.62-894.66
Capital Expenditure (%)
Free Cash Flow 3,3706711777527731,108.541,090.321,072.401,054.771,037.43

Weighted Average Cost Of Capital

Share price $ 39.7
Beta 1.683
Diluted Shares Outstanding 316
Cost of Debt
Tax Rate 29.35
After-tax Cost of Debt 2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.685
Total Debt 7,022
Total Equity 12,545.20
Total Capital 19,567.20
Debt Weighting 35.89
Equity Weighting 64.11
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 20,64716,56916,73616,92218,79318,484.0818,180.2417,881.4017,587.4717,298.37
Operating Cash Flow 4,2051,5478241,8981,8802,064.532,030.601,997.221,964.391,932.10
Capital Expenditure -835-876-647-1,146-1,107-955.99-940.28-924.82-909.62-894.66
Free Cash Flow 3,3706711777527731,108.541,090.321,072.401,054.771,037.43
WACC
PV LFCF 1,022.08926.86840.52762.22691.21
SUM PV LFCF 4,242.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.46
Free cash flow (t + 1) 1,058.18
Terminal Value 16,380.53
Present Value of Terminal Value 10,913.90

Intrinsic Value

Enterprise Value 15,156.80
Net Debt 4,695
Equity Value 10,461.80
Shares Outstanding 316
Equity Value Per Share 33.11